Liquefied Petroleum Gas Market

Liquefied Petroleum Gas (LPG) Market Outlook – 2030    

The global liquefied petroleum gas market size was valued at $130.1 billion in 2020, and is expected to reach $243.4 billion by 2030, registering a CAGR of 6.5% from 2021 to 2030. Liquefied petroleum gas (LPG) is a clean burning, sustainable, and efficient fuel. As it is green, low-carbon, efficient, and innovative energy source, it offers benefits for consumers, industry, and the environment. LPG is cost-effective, as most of its energy is converted into heat than other traditional fuels, and it can be transported, stored, and used in various applications, from cooking, heating, air conditioning, and transportation, to cigarette lighters and the Olympic torch. 

The growth of the global liquefied petroleum gas market is driven by rise in demand for LPG from various operations. In addition, implementation of stringent government regulations toward environmental pollution is a key factor fueling the market growth from 2021 to 2030. However, rapid development of the renewable energy sector and inconsistent domestic supply of LPG are the key factors hampering the growth of the LPG market. On the contrary, government initiatives toward the use of LPG over conventional fuels and rise in use of gas in the vehicles are anticipated to provide lucrative growth opportunities for the key players to maintain the position in the market in the upcoming years.

The global liquefied petroleum gas market is segmented into source, application, and region. Depending on source, the market is segregated into refinery, associated gas, and non-associated gas. On the basis of application, it is categorized into residential, commercial, agriculture, industrial, transportation, and others. Region wise, it is analyzed across North America, Europe, Asia-Pacific, and LAMEA.

Other players operating in the value chain of the global liquefied petroleum gas market are JGC Holdings Corporation, Royal Dutch Shell Plc., PETRONAS, PetroChina Company Limited, and Qatargas Operating Company Limited.

The key players are adopting numerous strategies such as product launch, agreement, partnership, joint venture, and business expansion to stay competitive in the liquefied petroleum gas market.

For instance, in March 2021, Total Oil India Private Ltd. (a subsidiary of Total SE) launched a new LPG cutting gas product developed specially for the metal cutting industry. The product will be produced in Total’s LPG facilities in Bangalore, Namakkal, and Maduranthakam. This product launch has strengthened the product portfolio of company.

The liquefied petroleum gas market is analyzed and estimated in accordance with the impacts of the drivers, restraints, and opportunities. The period studied in this report is 2021–2030. The report includes the study of the global market with respect to the growth prospects and restraints based on the regional analysis. The study includes Porter’s five forces analysis of the industry to determine the impact of suppliers, competitors, new entrants, substitutes, and buyers on the market growth.

Liquefied petroleum gas market, by source

By source, the non-associated gas segment held the largest liquefied petroleum gas market share in 2020, owing to rise in production of liquefied petroleum gas from non-associated gas source, which is extracted from natural gas wells. In addition, rise in demand for LPG from various domestic and industrial applications is anticipated to fuel the growth of the market from 2021 to 2030.

Liquefied petroleum gas market, by application

On the basis of application, the residential segment dominated the global market in 2020, in terms of share, owing to rise in demand for liquefied petroleum gas from residential applications such as space & water heating, cooking, and power generation. In addition, it provides benefits such as cost-effectiveness, energy efficiency, and eco-friendly, which will further drive the market growth in the coming years.

Liquefied petroleum gas market, by region

Europe garnered the highest growth rate in the liquefied petroleum gas market during the forecast period. This is attributed to the presence of key players and huge consumer base in the region. In addition, liquefied petroleum gas is gaining importance in the construction, food & beverages, manufacturing, residential, agriculture, and transportation industries in the region, owing to government initiatives toward reducing carbon emissions and aim of European Union to be climate neutral by 2050 which, in turn, is expected to augment the growth of the LPG market in the Europe during the forecast period.

COVID-19 impact on the market

Lockdown imposed due to the outbreak of COVID-19 pandemic resulted in temporary ban on import & export and manufacturing & processing activities across various industries, which decreased the demand for LPG from these consumers. This resulted in decline in market growth in the second, third, and fourth quarters of 2020. However, the liquefied petroleum gas market is expected to recover by the second quarter of 2021 as COVID-19 vaccination has started in various economies across the globe, which is expected to improve the global economy.

Key Benefits For Stakeholders

• The report provides an extensive qualitative and quantitative analysis of the current liquefied petroleum gas market trends and future estimations of the global LPG market from 2021 to 2030 to determine the prevailing opportunities.
• A comprehensive liquefied petroleum gas market analysis of the factors that drive and restrict the liquefied petroleum gas market growth is provided.
• Estimations and liquefied petroleum gas market forecast are based on factors impacting the market growth, in terms of value.
• Profiles of leading players operating in the LPG market are provided to understand the global competitive scenario.
• The report provides extensive qualitative insights on the significant segments and regions exhibiting favorable liquefied petroleum gas market growth. 

 Liquefied Petroleum Gas Market Report Highlights